Frost & Sullivan
Shanghai Frost & Sullivan Semiconductor Co., Ltd. (Stock Code: 3625.HK) successfully listed on the main board of the Hong Kong capital market on March 31, 2026. The company is a leading provider of power amplifier audio chips and haptic feedback chips in China, focusing on offering high-performance chip solutions for emerging application scenarios such as consumer electronics and intelligent vehicles. Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') provides exclusive industry advisory services for the listing of Shanghai Frost & Sullivan Semiconductor Co., Ltd. and hereby warmly congratulates them on their successful listing.
Shanghai Fourier Semiconductor Co., Ltd. (hereinafter referred to as 'FTC Semiconductor') successfully listed on March 31, 2026. The company plans to issue 12 million H shares, of which 95% will be international offerings and 5% will be public offerings. The maximum selling price per share is HK$50.00, raising a net amount of approximately HK$480 million.
During the process of listing in Hong Kong, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer communicate with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and supporting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.
Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data, during the statistical period from January to December 2025 and the past 36 months, Frost & Sullivan provided listing industry advisory services for 82 (market share of 73%) and 180 (market share of 71%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has rich industry experience and communication experience with regulatory authorities, exchanges, investment and financing institutions, and various related institutions.
PART/ 1
Investment highlights
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The company ranks first among Chinese suppliers in terms of total shipments of smart screen's power amplifier audio chips;
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The company is the first to introduce a portable power amplifier audio chip integrating ASIC DSP, the first mid-to-large power audio chip, and the first power amplifier audio chip certified by automotive-grade AEC-Q100;
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The company's product portfolio is diverse, covering low-power audio chips, medium and high-power audio chips, and tactile feedback chips;
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The company has a solid customer base, with its power amplifier audio chips being adopted by nine of the world's top ten smart manufacturers, and its medium to high-power audio chips by eight of China's top ten TV manufacturers.
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The company has a profound accumulation of core technologies, continuously driving product innovation and iteration;
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The company's core R&D team members have an average of over 20 years of experience in integrated circuit design, all from globally leading semiconductor companies.
According to the Frost & Sullivan report, in terms of retail sales in 2024, the company:
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The company ranks fourth among global amplifier audio chip suppliers;
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The company ranks third among Chinese amplifier audio chip suppliers, with a market share of 8.5%;
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The company ranks fourth among Chinese tactile feedback chip suppliers.
PART/ 2
Overview of China's Power Amplifier Audio Chips Industry
The amplifier audio chip is a chip module designed based on mixed-signal technology, which differs from traditional audio chips that have fixed volume and a single mechanical sound output. Amplifier audio chips utilize built-in or external audio algorithms, digital interface inputs, gain, equalizers, dynamic range adjustments, and other audio modules to achieve efficient audio signal processing and optimized output. According to a Frost & Sullivan report, the global amplifier audio chip market size has grown from 5.3 billion yuan in 2020 to 8.9 billion yuan in 2024, with a compound annual growth rate of 13.6% during this period. Driven by technological progress and further expansion of downstream applications, it is expected that the global amplifier audio chip market size will reach 204 billion yuan by 2029, with a compound annual growth rate of 18.1%. The annual forecast continues to grow at a compound annual rate of 8.6%, with the market expected to reach 876.3 billion yuan by 2028.
Data source: Analysis by Frost & Sullivan
According to brand positioning, the Chinese power amplifier audio chip industry can be divided into low-power audio chips and medium to high-power audio chips. Low-power audio chips can achieve precise output control within a low-power consumption range, and are therefore widely used in various consumer electronics devices, including smartphones, tablets, smart wearable devices, and VR/AR devices. They are used to maximize sound quality and volume under the constraints of compact speaker designs. Low-power audio chips accurately predict or measure the physical limits of speakers (real-time power, diaphragm displacement, speaker current voltage, speaker coil temperature, etc.) through algorithms. The internal signal processing unit of the chip adjusts the signal output in real time to keep the speaker working in its optimal state, achieving maximum output without damaging the speaker and ensuring reliability. According to a Frost & Sullivan report, the market scale of low-power audio chips increased from 1.1 billion yuan in 2020 to 1.9 billion yuan in 2024, with a compound annual growth rate of 14.1% during this period. With the deepening of AI applications in consumer electronics and the upgrade of audio solutions, the market scale of low-power audio chips will accelerate growth, reaching 44 billion yuan by 2029, with a compound annual growth rate of 18.7% from 2025 to 2029. Medium to high-power audio chips are driven by the continuous growth in the use of automotive speakers and the explosive demand for AI tuning, showing higher growth potential. The market scale increased from 1.3 billion yuan in 2020 to 2.2 billion yuan in 2024, and further grew by a compound annual growth rate of 19.9% to reach 55 billion yuan by 2029.
Data source: Analysis by Frost & Sullivan
PART/ 3
Overview of the Tactile Feedback Chip Industry in China
Haptic feedback chips are specialized electronic components or integrated circuits designed to control and drive actuators (such as vibration motors) to produce haptic feedback in electronic devices. This feedback simulates touch and enhances the user-experience interaction with devices. The core function of haptic feedback chips is to receive instructions from the device's main processor and convert them into precise electrical signals to control the movement of actuators. Calculated by retail sales, the market size of haptic feedback chips in China has grown from RMB 6.9 billion in 2020 to RMB 9.8 billion in 2024, with a compound annual growth rate of 9.0%. Driven by the acceleration of domestic substitution and the growing demand for intelligent cockpits, the market size of haptic feedback chips is expected to reach RMB 114 billion in 2025, growing at a compound annual growth rate of 17.0%, and reaching RMB 214 billion by 2029. The shipments of their core technology, linear motor drive units, reached 300 million pieces in 2024 and are expected to grow at a compound annual growth rate of 38.0%, reaching 1.5 billion pieces by 2029.
Data source: Analysis by Frost & Sullivan
PART/ 4
Market Competition Pattern and Share of Tactile Feedback Chips in China
In 2024, the global shipments of power amplifier audio chips were about 5 billion units. Among them, our company achieved global shipments of 460 million power amplifier audio chips throughout the year, accounting for about 9.2% of the global market share. We ranked third among global power amplifier audio chip companies, occupying a leading position. In terms of revenue, our company accounted for about 4.1% of the global market share and ranked fourth among global power amplifier audio chip companies.
Data source: Analysis by Frost & Sullivan
In 2024, the shipment volume of China's power amplifier audio chips was approximately 2.5 billion units. Our company achieved a total shipment volume of 400 million units for power amplifier audio chips throughout the year, accounting for about 15.8% of the market share, ranking second in China and enjoying a significant market position advantage. In terms of revenue, our company accounts for about 8.5% of the market share, ranking third among power amplifier audio chip companies in the Chinese market.
Data source: Analysis by Frost & Sullivan
According to a Frost & Sullivan report, the company achieved shipments of 5.845 million tactile feedback chips in China in 2024, accounting for approximately 1.9% of the market share, ranking fourth among Chinese tactile feedback chip companies.
Data source: Analysis by Frost & Sullivan
PART/5
Driving factors of the Chinese power amplifier audio chip market
● >The demand for audio interaction in consumer electronics is upgrading at a rapid pace
With the increasing demand for intelligent voice interaction in consumer electronics, there is a need for synchronous improvement in power amplifier audio chips and audio power control algorithms.
● >Display device requirements
The trend of combining audio with display is becoming increasingly evident. In 2024, the global shipments of power amplifier audio chips for smart screens were about 90 million units, and it is expected to continue expanding at a compound annual growth rate of 12.0%, reaching 160 million units by 2029. In 2024, the shipments of domestic smart screen power amplifier audio chips in China were about 45 million units. With the popularization and localization substitution of smart screen devices, the market scale for power amplifier audio chips used in smart screens is expected to continue expanding at a compound annual growth rate of 15.0%, reaching 90.5 million units by 2029.
● Upgrading the audio hardware and software configuration for in-vehicle systems
The application of multi-channel audio systems is even more widespread, including more ceiling speakers and subwoofer configurations. The mainstream in-car speaker configuration on the market is gradually upgrading from around four to 15 or more by 2024, with an expectation that more and more models will be equipped with more than 20 speakers in the future. The ability to automatically adjust sound effects based on user preferences and current environment through AI algorithms has become a key competitive area.
● Emerging areas are accelerating penetration
China's power amplifier audio chip industry has achieved widespread coverage in mainstream markets such as consumer electronics, intelligent vehicles, and IoT devices (such as smart speakers). However, the penetration rate is still low in emerging application areas such as industrial IoT and smart cities. With the accelerated development of smart city and industrial IoT infrastructure and other IoT fields, these emerging areas will become the key engines for future industry growth.
PART/ 6
Development Trend of China's Power Amplifier Audio Chips Market
● Rising demand for intelligent vehicles
With the increasing intelligence level of vehicles, the role of tactile feedback is evolving from a simple notification tool to a key component for ensuring safety and enhancing user experience.
● >Popularization of consumer electronics
Consumers' expectations for realistic tactile feedback during typing, gaming, and notifications continue to drive technology towards finer and lower-power designs. This trend is also evident in wearable devices such as smartwatches and emerging AR/VR devices, which rely on tactile technology for information transmission and interaction.
● Expanded application scope
The application of tactile technology is expanding into industrial automation (for precise robot control) and the medical field (for rehabilitation robotics and tele-surgery with force feedback), showing tremendous future growth potential.
PART/ 7
Barriers to entry in the amplifier audio chip industry
● Technical Barriers
Power amplifier audio chip products have high requirements for performance in terms of anti-interference, detection accuracy, power consumption, size, etc. Moreover, with the continuous upgrading of audio effects in various consumer electronics and smart vehicles, new requirements are brought forth for power amplifier audio chip tuning technology, customized design, algorithms, and other aspects. For newcomers to the market, it takes a long time and requires substantial resources to carry out technology research and development work, as well as to apply for patents and undergo audits by relevant institutions. Therefore, the industry has high technical barriers.
● >Customer barriers
In the power amplifier audio chip industry, especially for consumer electronics, intelligent vehicles, robotics, and other scenarios requiring high customization, customers have strict audit and certification systems for suppliers. These include functional safety certifications such as JESD22-A113, and they must meet reliability standards such as automotive-grade AEC-Q100 and quality management system standards (ISO9001). After establishing a partnership, the cost of replacement is high, and major customers have a high degree of dependence, making it difficult for new entrants to quickly break through.
● Supply chain barriers
The Chinese power amplifier audio chip industry requires a stable supply chain system. Enterprises need to ensure long-term and stable supply of wafer foundry and packaging testing capacity. By locking in capacity resources through advance payments and long-term agreements, otherwise they will face the risks of mass production delays and cost premiums. In the wafer-less model, the company mainly relies on third-party foundries for chip manufacturing. Although this model itself exposes the company to several risks such as supplier concentration and geopolitical risks, the company has mitigated these risks through diversified procurement strategies. Specifically, most of the company's chip supply comes from Chinese manufacturers, while the remaining part is allocated to suppliers in Japan and South Korea. This arrangement is in line with industry practices as it enables the company to avoid over-reliance on any single jurisdiction and enhances the resilience of the supply chain. By maintaining a balanced supplier portfolio in China, Japan, and South Korea, the company can mitigate to some extent the geopolitical risks related to Japan and South Korea, as well as the potential sanctions or trade restrictions related to China.
